Is Barnes & Noble’s Business Model in Trouble?
Could Barnes & Noble (NYSE: BKS) be the next Blockbuster? The once-dominant Blockbuster business model disintegrated into bankruptcy this year and seems unlikely to ever rebound. A close look at the Barnes & Noble business model yields many of the same issues as Blockbuster: Blockbuster faced intense competition from disruptive business models such as Netflix […]
Do Blockbuster’s Woes Signal a change in the Big-Box Business Model?
Many business models have been built upon the foundation that bigger is better. Business models such as Barnes & Noble, Best Buy, Home Depot, Wal-Mart, Costco, Men’s Warehouse, and more were all predicated on the presumption that massive selection would act as a magnet pulling in customers from miles away. Does the continued demise of […]
Blockbuster vs. Redbox Business Model
Coinstar, the parent company of Redbox announced record earnings this week. Net income tripled from the previous period. Clearly, Redbox’s $1 rental model with 20,000 locations is superior to Blockbuster’s retail store model. In their press release, Redbox is bullish on the growth opportunities for the $1 rental model. Redbox feels it can double the […]
How the Mighty Can Fall
Fifteen years ago, Blockbuster controlled nearly 80% of the video rental market and practically printed money. What happened? Wal-Mart did not event discounting, Woolworth’s did in the 1800’s. However, Woolworth’s got out-Woolworthed by Kmart and now Kmart has been out-Kmarted by Wal-Mart. My bet is that Wal-Mart could get out-Wal-Marted if they aren’t careful. Why […]
